Private schools prep for economic hard times

February 26, 2009|By Diane Rado and Jo Napolitano, CHICAGO TRIBUNE and Jo Napolitano is a Tribune reporter. Diane Rado is a freelance reporter.

Marmion Academy in Aurora has been helping students pay their tuition for years and it has always been enough -- until this year.

Now Headmaster John Milroy is trying to create an emergency fund to help students stay at the school as more families carry $5,000 balances on their tuition of $8,800.

"Unless things change shortly, I anticipate this trend of emergency need will continue," he said.

From prestigious schools that attract wealthy families to church schools that serve the poor, private schools are feeling the pinch of an economy gone bad. Financial aid applications and scholarships are on the rise, and admissions applications are flat to slightly declining, private school officials say.

When the Archdiocese of Chicago announced at the end of January that emergency aid was available for families who lost jobs this school year, it was deluged within days.

Likewise, scholarships have spiked by more than 50 percent at the Big Shoulders Fund, which provides aid to students in high-poverty Catholic schools. Executive Director Joshua Hale estimates the non-profit will award up to 4,600 scholarships this school year, up from 2,878 two years ago.

The situation mirrors concerns at private schools around the country.

The National Association of Independent Schools is advising its 1,400 member schools to plan for a variety of budget scenarios, including a "disaster scenario." In that severe situation, "schools would develop a plan to cope with a budget that's off by 20 percent or more," its information indicates.

In a sign of the times, the association's financial aid service processed 146,000 aid applications for private school families for this school year -- up from 140,000 the prior year. Figures are not yet available for 2009-10.

Milroy said the need for aid is not confined to lower-income households. Many of the middle- and upper-middle-class families at his school are reaching out for help for the first time.

"I don't think the need for aid is isolated to any particular demographic," he said. "These are professionals, 50-year-olds who are losing their jobs. They've never had to file for financial aid before."

For the first time last spring, the private University of Chicago Laboratory Schools set aside 25 percent of donations from its major school fundraiser to go to financial aid, and it may not be enough. "We have additional requests this year for financial aid, and we are afraid we will not be able to meet all the needs that have been expressed," said lab school director David Magill.

Nationwide, private school enrollment has remained steady this school year -- but that represents a change. "In past years, enrollment has really grown. So it is steady instead of growing," said Myra McGovern, spokeswoman for the association. Enrollment is crucial because it brings in tuition dollars that pay for teacher salaries and other expenses at private schools.

Clement Martin, principal of St. Frances of Rome School in Cicero, said some families are delaying their tuition payments while others are using their income tax refunds to catch up. Martin said his school, which serves 250 students, is trying to help parents any way it can.

"When times are tough, we don't turn people away," he said. "We do have parents who are out of work. A lot of them are in construction or trades, so things are slow."

Maryann O'Neil, principal of Montini Catholic High School in Lombard, said more families are asking for help every year, but this year is different. For the first time, families are telling school officials they'll be able to cover tuition -- or at least part of it -- but not books, uniforms or retreats. "I'm seeing it filter down to those little things," O'Neil said.

When short on money, parents may decide to enroll their children in public schools, sometimes in the middle of the school year.

"Unfortunately, we lost several students because of the financial crisis, even though we tried our best [to keep them]," said Timothy Bopp, head administrator at Holy Trinity High School in Chicago, which serves mostly low-income students. The school dispersed more than $1.5 million in financial aid to its 400 students this school year. Still, up to 10 students withdrew, Bopp said. "In those cases, it is not us not trying. I think the family is just saying enough is enough."

Even in more affluent areas, families are struggling.

The highly regarded Benet Academy in Lisle for the first time devoted part of the proceeds from its annual auction in November to emergency financial aid. Principal Stephen Marth said about $46,000 of the donations collected were targeted for families in which parents "suddenly did not have a job." Tuition at Benet is $7,800 and is scheduled to increase to $8,200 next year. "We try to keep it as low as possible," Marth said.